Potash Corp to buy stake in Brazil's Heringer

Reuters Staff

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March 2 (Reuters) - Potash Corp of Saskatchewan Inc , the world’s biggest fertilizer company by market capitalization, said it would buy a 9.5 percent stake in Brazil’s Fertilizantes Heringer SA from its controlling shareholders for $55.7 million.

The deal, expected to close in the second half of this year, will pave the way for a long-term potash supply agreement, allowing Potash Corp to become Heringer's principal supplier over time. (bit.ly/1Bxhwjg)

Heringer, one of the largest fertilizer companies in Brazil, delivered 5 million tonnes of fertilizers, including about 1 million tonnes of potash in 2013, with net revenue of about $2.5 billion. (Reporting by Ashutosh Pandey in Bengaluru; Editing by Joyjeet Das)